TY - JOUR
T1 - DETERMINANTS OF EXTREME WEALTH
T2 - THE ROLE OF CORRUPTION
AU - Castillo, Omar Neme
AU - Chiatchoua, Cesaire
AU - Santibáñez, Ana Lilia Valderrama
AU - Márquez, Héctor Flores
N1 - Publisher Copyright:
© Hitotsubashi University.
PY - 2022/12
Y1 - 2022/12
N2 - The aim of the paper is to determine the effect of corruption on extreme wealth of individuals included in Forbes list of super-rich over the period 2006-2015. The methodology used is sys-GMM since it allows to control heterogeneity/ endogeneity among individuals. Three novel and different measures of direct corruption are used. The main finding shows that structural corruption positively affects individual extreme wealth, in a context of political/institutional, economic and personal factors. Although it is identified that sporadic or one-time corruption limits extreme wealth. Nevertheless, it is also found that the extreme accumulation is based on a combination of factors, such as meritocratic, non-meritocratic, and personal traits. In any case, this tends to perpetuate the corrupt systems and their accumulated effect on elites. Based on the foregoing, this research recommends certain corruption control mechanisms such as: the establishment of a global tax on extreme wealth, teamwork between the company, civil society and the government, public and private anti-corruption measures and a public investment of high quality that promotes more public well-being.
AB - The aim of the paper is to determine the effect of corruption on extreme wealth of individuals included in Forbes list of super-rich over the period 2006-2015. The methodology used is sys-GMM since it allows to control heterogeneity/ endogeneity among individuals. Three novel and different measures of direct corruption are used. The main finding shows that structural corruption positively affects individual extreme wealth, in a context of political/institutional, economic and personal factors. Although it is identified that sporadic or one-time corruption limits extreme wealth. Nevertheless, it is also found that the extreme accumulation is based on a combination of factors, such as meritocratic, non-meritocratic, and personal traits. In any case, this tends to perpetuate the corrupt systems and their accumulated effect on elites. Based on the foregoing, this research recommends certain corruption control mechanisms such as: the establishment of a global tax on extreme wealth, teamwork between the company, civil society and the government, public and private anti-corruption measures and a public investment of high quality that promotes more public well-being.
KW - corruption
KW - extreme wealth
KW - individual merits
KW - not-meritocratic determinants
UR - http://www.scopus.com/inward/record.url?scp=85160425908&partnerID=8YFLogxK
U2 - 10.15057/hje.2022007
DO - 10.15057/hje.2022007
M3 - Artículo
AN - SCOPUS:85160425908
SN - 2436-097X
VL - 63
SP - 126
EP - 148
JO - Hitotsubashi Journal of Economics
JF - Hitotsubashi Journal of Economics
IS - 2
ER -